Savers’ concerns

This refers to ‘Institutional credit to rural sector must get more attention: President’ (August 24). The Rajan era saw RBI asserting that it was its objective to bring all institutions doing banking business within its regulatory and supervisory ambit. It is another matter that if Rajan had explained his objective transparently, the conversion of some NBFCs as banks or the setting up of postal banks would not have seen the light of the day.

The unfinished agenda in streamlining processes in banks and institution building is huge. This is in addition to matters such as rural credit management and revamping of banking channels (cooperatives and RRBs) in the rural sector.

By drawing attention to the trust savers repose in banks, the President was voicing the concerns of millions of middle class citizens who provide resources for the banking business. To restore the common man’s faith in the banking system, measures such as improving recovery of loans, reducing costs in management of funds and ensuring that the workforce remain secure and satisfied are all important.

MG Warrier

Mumbai

The right monetary policy

This refers to ‘Revisiting inflation targeting’ by Madan Sabnavis (August 23). The right monetary policy in the context of a developing economy like ours cannot shut out the options to work as growth stimulants. An inflation-targeting monetary policy may result in price stability. But we also need a monetary policy that ensures efficient allocation of savings so that there is financial stability.

Viewed in this context, softening of interest rate and periodic mitigation of banks’ NPAs in sectors such as agriculture and SMEs should also form part of monetary policy.

Ranjit Kumar Das

Patna

Fair view

Raghuvir Srinivasan has lucidly highlighted the human psyche in ‘Oh, for some balance!’ (From the Viewsroom, August 24). We react in a frenzied manner in victory and defeat: dole out freebies or burn effigies. No doubt sportspersons bring laurels to the country through sheer dint of hard work. Treat all participants equally, without humiliating anyone.

HP Murali

Bengaluru

Dubious distinction

Tamil Nadu CM J Jayalalithaa and her supporters must not get agitated over the Supreme Court coming down on the State government for filing defamation cases against all those critical of its policies and programmes. They should take it in the right spirit and move on. The CM should not let the ‘arrogance of power’ drive her to misuse the state machinery to take on her political opponents. Tamil Nadu has the dubious distinction of ‘maximum misuse of the defamation law’. The list of those being prosecuted under the defamation law in the state reads like a who’s who of the opposition political camp. No leader is above criticism in a democracy and Jayalalithaa is no exception.

No doubt she is a tremendously popular leader and her ardent supporters deify her. But it does not confer on her the right to claim immunity from criticism and sue for defamation on the flimsiest of grounds expending public money. She can salvage the situation by withdrawing the defamation cases filed for no valid reason and turning over a new leaf.

G David Milton

Maruthancode, Tamil Nadu

Local hiring

Lately, banks have been hiring through IBPS for which training is available at centres in the district headquarters and elsewhere. People from villages and rural areas, who are capable of passing these exams, are deprived of training as they cannot afford it. This results in people who can afford the training from different States getting these jobs in rural areas. It doesn’t always work well. Go to any bank branch in the rural areas and you will find people there who do not know the local language. This leads to a high attrition level, even as local people are desperate for jobs. A local hiring system will be more effective.

S Mahesh

Bengaluru

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